-- 3:00 a.m. in hong kong. welcome to bloomberg markets. from bloomberg world headquarters in new york, good afternoon. here is what we're watching at this hour. stocks selling off as the dollar falls. his optimism starting to fade? will oversee a massive recall. -- kenneth feinberg will oversee a massive recall. strategy.y software how they plan to channel that into self driving cars. we are waiting president obama who will deliver a press conference before going to hawaii. he will stop in san bernardino to speak with families of the victims of the shooting last week.

why we are waiting, i want to go to julie hyman. we are seeing a lot of steep selling in the markets today. following on the heels of the after the happened fed raised interest rates for the first time in a long time. all averages are lower by at least 1% or more. 500, 16% above the 10 day average as we see expiration of futures contracts. two of the biggest drags individually on the major averages today are disney and apple. disney, despite the star wars hullabaloo is being downgraded. company is overpaying for sports rights.

apple his been on downtrend, setting up for a negative month rate there has been analyst commentary that iphone sales may come in worse than estimated. be is still setting up for a positive week, interestingly enough. it is still higher by 4/10 of a percent on the week, largely because of the run up to the fed interest rate increase. i want to mention something else we are watching today is crude oil, which has had a wild roller coaster today. rising as the dollar was falling, but that has come down whichgot to the rig count showed an increase phrase that has put a pressure on oil prices. a decline in the dollar after recent gains in the wake of the interest rate increase. david: a weakening dollar having a nice effect on metals? yes.:

gold, silver, copper, remaining higher as the dollar remains low. david: thank you. once again we are waiting for president obama to bring a news conference. ord's go to our first wer news. >> the house and senate have passed a $1.1 trillion spending measure that efforts a government -- over a government shutdown. it now goes to president obama. meanwhile, the majority of americans view race relations as being worse than at any other point in the last 20 years. the percentage of latinos who view race relations as bad or has jumped 16 point. s. jared fogle has been moved to a

prison in colorado. he had been held in oklahoma city. he is undergoing psychological treatment. there has been a ban on tanning beds unde for those under 18 yes old. those using it must also sign a consent form talking about the danger of skin cancer. president obama is getting rid of the news conference. i will go to john heilemann and mark halperin. they will cover from here. .ark: thank you we expect president obama any time now. year a his annual conference. we do expect a huge focus to be on terrorism.

john: they go for a long time, they cover a lot of ground. terrorism is front and center since san bernardino. it has to be a focus today. the president is done for this event, he goes west for the annual family vacation in hawaii. bernardino,o san california, where he will meet one-on-one with the families of the victims of the terrorist attack that took place there at the inland regional center earlier this month. big topic,rism is a the president, as he tries to do at these annual year-end press conferences is almost certainly going to start by talking about the things he has gotten done this year on behalf of the american people. john: he does all of that and tries to wrap up the year and put a bow on it. a more it in otherisational way than

press conferences. last year he was a lot more unplugged that he had been his old ministration -- whole administration. mark: a lot of things dealing with overseas, the trade agreement, also the climate agreement, the nuclear agreement and in iran. now on capitol hill, under the new speaker of the house, paul ryan, there has been a fair amount of activity. have a budget transportation deal, you also have budget and tax deals that are flying through due to the standards of washington -- through by the standards of washington. got done withals relative ease, and he will want to look forward to 2016 and frame the possibility of more productivity than he has in the past. here he comes.

president obama: good afternoon, everybody. is not the most important events that is taking place in the white house today. there is a screening of star wars for gold star families and children. i will be relatively sustained. let me say a few words about the uveitis and the year ahead, and that i will take a few questions. as i look back on this year, one thing i see is that so much of our study persistent work over the years is paying off for the american people in big, tangible ways. to rescue theons economy set the stage for the longest streak of private-sector job growth on record, with 13.7 million new jobs in that time. the unemployment rate has been cut in half, down to 5%. most importantly, we just grew faster than at any time since the recovery began.

over the course of this year, and one of the decisions we made early on has paid off. years of study and limitation of the affordable care act else to drive the rate of the uninsured 10% for theelow first time since records were kept on that. 17 million more americans have gained coverage and we now know that 6 million people have signed up through healthcare.gov for coverage beginning on january 1. 600,000 on tuesday alone. new customers are up, one third wer the last year, the more sign of the stronger the system becomes. that is good news for every american who does not have to worry about being one illness or accident away from financial hardship. on climate, our early investment in clean energy ignited a clean energy industry boom.

our actions to reduce our carbon table,ns. china to the and last week in paris nearly -- aations forged historic historic agreement that was only possible because of american leadership. in additionorld, and ,o the nuclear deal with iran reestablishing did let it with cuba, and making sure that american businesses are operating on a level playing field, and that we are setting the rules for global trade, we have shown what is possible when america leads. dedicated decades of advocacy, marriage equality became a reality in all 50 states. i want to point out that i set up to -- said at the beginning of this year that interesting stuff happens in the

fourth quarter, and we're only halfway through. i want to thank congress for acting. i got to sign an education bill that fixed problems with no child left behind. we signed a transportation bill, that although not as robust as i think we need, still allows states and local governments to plan and actually get moving, putting people back to work rebuilding our roads and our bridges. workt xm bank back to protecting american exports and today they pass a bipartisan budget deal. i'm not wild about everything in it, that is true for everybody, but it is a budget. as it invest in our military, and our middle-class without ideological divisions that would have weakened wall street reform or rules on big polluters. it is part of an agreement that tax imminently extend

credits to 24 million american families. it strengthens american , and itip at the imf illuminates the possibility of a shutdown for the first time -- eliminates the possibility of a shutdown for the first nine months of next year, we have a long way to get important things done on behalf of the american people. work to still a lot of do. for example, there is still a lot more that congress can do to promote job growth and increase wages in this country. i still want to work with congress, both democrats and republicans, to reform our criminal justice system. and we have commuted the sentences of 95 men and women who have served their debt to society. course, our most important job is to keep americans safe. i had a lot to say about that

this week, let me reiterate. the united states continues to lead a global coalition in our mission to destroy isis. about -- artie lost already lost about 40% of the populated areas they once controlled, and is losing territory in syria. as we keep up the pressure our air campaign will hit harder than ever, taking out other leaders, their commanders, and their forces. we provide support on the ground as they push isis back. our men and women are carrying out there mission with trademark professionalism and courage. we are thankful to their families as well because they served alongside those who are actually deployed. isis'ing idols heart -- heart in syria will make it harder for them to pump their terrorist propaganda in the world. , inhe same time, as we know

san bernardino, we have to remain vigilant at home. counterterrorism, intelligence, law enforcement communities are working 20 47 to protect our homeland and all of us can do our part by staying vigilant, by saying something if we see something that is suspicious. by refusing to be terrorized, and by staying united as one american family. realort, for all the rockets we have made over the past seven years we still have some unfinished business. i plan on doing everything i can with every minute of every day i have left as president to deliver on the behalf of the american people. i have never been more optimistic about a year ahead than i am right now. in 2016i'm going to leave it all on the field. let me take some questions. >> you are going to california

today. ,ou said earlier this week there is no threat of a similar attack. how is it possible to know? are they hard to detect before hand? some are saying your government social media the all those applying to have visas in this country. should that be mandatory? president obama: you are absolutely right that it is very difficult for us to detect lone plots, or those of a husband and wife in this case. despite the incredible vigilance and professionalism of all of our law enforcement, homeland security, etc., it is not that different from us trying to mass shooter.t

you do not always see it, they do not always communicate publicly. if you do not get what they say publicly, it becomes a challenge. work atontinuing to every level to make sure that there is no slip between information we are continuing to strengthen our information sharing with foreign countries. part of the tragedy in paris, you are seeing much more cooperation from a european partners on these issues. -- our european partners on these issues. this is a different kind of challenge than the sort that we had with al qaeda that involved highly trained operatives who were working as a network. isil trying to

encourage or induce somebody may be prayed to this kind of propaganda. it becomes more difficult to see. it does mean they are less likely to be able to carry out large complex attacks. as we saw in san bernardino, you can still do enormous damage. of reviewing social media for those obtaining fee says may have been garbled a bit. .- obtaining visas it is important to distinguish between posts that are public, social media on a facebook page, versus private communications through various social media or apps.

our law enforcement and intelligence professionals are constantly monitoring public posts. that is part of the visa review process that people are investigating what individuals have said publicly and questioned about any statements that need to be made. if you have a private communications between two individuals, that is harder to discern. by definition. with thegaging high-tech community to find out how we can in an appropriate way ve ao a better job if we ha lead to track a suspected terrorist. we have to recognize that no government has the capacity to

read every single person's texts or e-mails or social media. if it is not posted publicly. there will be feasibility issues that are probably insurmountable on some level. it raises questions about our values. it was only a couple years ago where we were having a major debate about whether the government was becoming too much like big brother. overall, i think we have struck the right balance in protecting civil liberties and making sure u.s. citizens's privacy is preserved. that we are making sure that there is oversight to what our intelligence agencies do. , we will have to continue to balance our needs for security with people's legitimate concerns about privacy. because the internet is global

and commit occasions systems -- communications are global, the values we apply here oftentimes are ones that folks who are trying to come into the country are also benefiting from because they are using the same technologies. this is precisely why we are working hard to bring law enforcement intelligence and high-tech companies together because we will have to really review what we can do both technically and consistent with discernes to try to more rapidly some of the potential threats that may be out there. question -- congress has made it clear that they will not let you transfer prisoners to the u.s. for trial.

some think you already have the authority to close gitmo next year. are you willing to exercise that? president obama: first of all, we have been working systematically with persistence in reducing the population. we have a review process for those available for transfer. , theyate countries monitor them and it has been determined that they can be transferred. my expectation is by early next year, we should reduce the population below 100. away atcontinue to chip the numbers in guantanamo. we will come to a point where we will have a non-reducible population. tois difficult for us to try

get those folks through the military commission process. there will be a challenge there. , i'm presenting a plan to congress about how we can close guantanamo. i'm not going to automatically assume that congress has no. i'm not being coy it is fair to say there will be significant resistance to that. i think we can make a strong argument that it does make sense -- doesn'te spending make sense for us to be spending million, $10 billion to have a secure setting for 50-70 people. congress hasuntil

definitively said no to a well-thought-out plan with numbers attached to it before we say anything definitive about my executive authority here. preferable if i can get stuff done with congress. >> [indiscernible] president obama: you've seen me on a bunch of issues like beigration, i will not forward leaning on what i can do without congress before i've tested what i can do with congress. every once in a while, they will surprise you. may be one of those places because you can make a strong argument, guantanamo continues to be one of the key magnets for jihadi recruitment. to the question earlier about

how they propagandize and convince somebody in the united states who may not have a criminal record or history of terrorist activity to start shooting. this is part of what they feed. injustice, of gross america is not living up to its professed ideals. we know that, we see the internet traffic. we see how guantanamo has been used to create this mythology that america is at war with islam. for us to close it is part of our modern terrorism strategy. that is supported by our military and diplomatic and intelligence teams. when you combine that with the fact that it is really expensive , that we are essentially detaining a handful of people and each person is costing

several million dollars to detain when there are more efficient ways of doing it, we can make a strong argument. that itake your point will be an uphill battle. every battle ipad with congress over the last -- i have had with congress has been an uphill battle. sometimes that may prove necessary, but we try not to get ahead of ourselves on that. >> [indiscernible] would you advise the future

president to call for at their carrion leaders to step down -- authoritarian leaders to step down? president obama: there's been a lot of revisionist history, sometimes by the same people making different arguments depending on the situation. maybe it is useful for us to go back over some of these issues. mubarak.t depose millions of egyptians did because of their dissatisfaction with the corruption and authoritarianism of the regime. we had a working relationship with mubarak. we did not trigger the arab spring. the notion that the u.s. was in the position to pull the strings on a country that is the largest in the arab world is mistaken. , at thetrue is that

point in which the choice becomes mowing down millions of people or trying to find some it wasion, we believed more sensible for us to find a peaceful transition to the egyptian situation. , libya isct to libya an alternative version of syria in some ways. by the time the international ,oalition interceded in syria chaos and already broken out. you already had the makings of a civil war, you had a dictator who was threatening and was in a position to carry out the wholesale slaughter of large numbers of people. mandated under u.n.

with a coalition of folks in avert ao try to rev a big humanitarian catastrophe. those who argue we should have left muammar gaddafi seem to forget that he had already lost control of his country and we syria and had another libya now. the problem with libya was the ont that there was a failure the part of the entire international community and the united states has some accountability for not moving swiftly enough and underestimating the need to rebuild government there quickly. as a consequence, you now have a very bad situation.

goes, i think it is entirely right and proper for the united states of america to speak out on behalf of its values. when you have an authoritarian leader that is killing hundreds of thousands of his own people, the notion that we would just isnd by and say nothing contrary to who we are. at that point, us being in collusion with that kind of governance would make us even more of a target for terrorist activity. >> [indiscernible] president obama: the reason that ass has been a problem in syriaa is because that is a

majority sunni country. he had lost the space that he had early on to execute an .nclusive transition he chose instead to slaughter people. once that happened, the idea that a minority population that tens ofmehow crush millions of people who oppose feasible, not plausible. being cold eyed thehardhearted about situation there, it would not happen. consequence, our view has bring peace to syria, you cannot get an end to civil war unless you have a

government that is recognized as legitimate by a majority of that country. it will not happen. this is the argument that i have asked repeatedly with mr. bruton. eating five years ago. -- mr. putin. dating five years ago. so bad, let him be as brutal and repressive as he can, but at least he will keep order. i said, look, the problem is that the history of trying to keep order when a large majority of the country has turned against you is not good. five years later, i was right. andow have an opportunity john kerry is meeting as we speak with syria and turkey and iran and the gulf countries and other parties of interest, we now have an opportunity not to turn back the clock, it will be

difficult to overcome the devastation that has happened in syria already, but to find a political transition that maintains the syrian state. that recognizes there are a bunch of stakeholders inside of syria. initiate aly cease-fire that will be perfect but allows both parties to turn on our number one focus, destroying daesh and its allies in the region. that will be a difficult process , a painstaking process, but there is no shortcut. that is not based on some idealism on my part. is a hard hat calculation about what is required to get the job done. >> [indiscernible] president obama: i think assad

will have to leave in order for a country to stop the blood and for all the parties involved to be able to move forward in a nonsectarian way. legitimacy in the eyes of a large majority of the country. is there a way of us constructing a bridge, creating a political transition that allows those allied with a righting now -- assad now, allows the russians to ensure their equities are respected, that minorities are crushed or retribution is not the order of the day, that will be important as well. that is what makes this so difficult.

assad made a decision earlier that he was not more important than his entire country, that transition would have been much easier. it is a lot harder now. john kerry has been doing some excellent work in moving the process forward. i do think you've seen from the thatans a recognition after a couple of months, they are not moving the needle that , despite a sizable deployment in syria. that is what i said just what happened. there's only so much bombing you can do when an entire country is its rulernd believes does not represent them. what are your top legislative

priorities for next year? new speaker, paul ryan change the dynamic of you and capitol hill? can you be more ambitious next year, doing things like completing the tpp or getting tax reform? ,resident obama: first of all it is important to give credit where credit is due. john boehner did a favor to all of us, including speaker ryan, by working with us to agree on a topline budget framework. that was the basis for subsequent negotiations. he was able to do that because he was going out the door. morehen given a little room to maneuver than he previously had. having said that, i also want to

give speaker ryan credit. mcconnell anditch nancy pelosi and harry reid for the orderly way in which they actually negotiated a budget, the way congress has historically and typically work. last-minute used to crises and shutdown threats and so forth. this is a messy process that doesn't satisfy everybody completely, but it is more typical of american democracy. i thinks big ryan deserves a role in that. me, he hastions with been professional, he has reached out to tell me what he can do and what he cannot do. i think it is a good working relationship, we recognize that we disagree on a bunch of other stuff.

we have fundamentally different visions for where we want to move the country. even before he was elected he had worked on capitol hill, he is respectful of the process and respectful of how legislation works. kudos to him as well as all the leaders involved in this process. repeat, because sometimes we take for granted what has happened. i said early on in this process that i was not going to sign a relievehat did not sequester, this artificial austerity making it difficult for us to invest in education and our military. i said i would not accept ideological writers attached to a big budget deal.

we met our goals. because of some terrific negotiations by the democrats on capitol hill and some good work by our legislative staff here, we will be able to fund environmental protection, we will make sure that we are investing in things like early childhood education and making college more affordable, we will be able to implement the clean power plant rule. we will be able to continue to invest in clean energy that spurs innovation we will be able to make sure that our military gets the equipment and training that it needs in order to be effective in fighting isil and other threats around the world. it was a good win. there are some things i don't like, but that is the nature of

legislation and compromise. i think the system worked. optimism thatsome next year we can get some more work done. it is an election year. theously, a lot of legislative process is going to be skewed by people looking over their shoulders, worrying about primaries, trying to position themselves relative to the presidential camp base. so, that makes it harder. there will be a handful of areas where we can make real progress. one of them you already mentioned. the transpacific partnership. been out, has congress has a chance to review and it meets the bar that i set. it is consistent with what i promised. the most prolabor,

proenvironment, aggressive trade deal in history. everyliminates just about tariff on american manufacturing goods in countries that have charged a tax on anything that american businesses sell in these areas. it brings those taxes down to zero on basically all american manufactured products. a huge win for agriculture. now, the people of japan will be in a better position to enjoy american beef and american fork. which, up until this point, even though we are much more efficient producers, have been tacked with a tax that our products are uncompetitive in japanese markets. this is a big deal and speaker ryan would like to try to get it done. there are proponents and

opponents of this in democratic and republican parties. it will be an interesting situation where we will have to stitch together the same kind of bipartisan effort for us to get it done. the second area i think is justice is criminal reform. , serious been sincere negotiations and efforts by democrats and republicans to create a criminal justice system that is more fair, more evenhanded, more proportionate and is smarter about how we reduce crime. i have really been impressed by the dedication of a core group of democrats and republicans, some of them the most liberal democrats and most conservative republicans coming together saying this is the right thing to do. we have a good bill in the senate that passed with

bipartisan support out of committee. my hope is that gets to the floor and we can compare it up with a good bill out of the house and this is an area where us could potentially see save money, reduce recidivism, make sure that people who make a have to pay the price, have to serve time, but are released in a reasonable fashion , that they have more support so they are less likely to go back into the criminal system subsequently. we may be area where able to make a big difference. those are two examples. we will keep on working for a number of examples like that. wherever there is an opportunity to my will take it. --, i will take it. you mentioned climate change

already. paris was a turning point for the world. it is not a legally binding document. it bypasses congress completely. are you worried that a republican president could stop the deal in its tracks entirely? are you more interested in campaigning for a democratic nominee considering that danger? i think it'st obama: fair that i was going to be campaigning with the democratic nominee. i am very confident that we will have a terrific democratic nominee. whose phone is that? come on, now. you recognized your ring. don't be embarrassed. turn it off. there you go.

i think we will have a strong democratic nominee. the democratic nominee will win. i think i will have a democratic successor and i will campaign hard to make that happen. more likely to share my fundamental vision about where america should go. think said that, what i people should also feel good the agreement struck in paris, although not legally binding when it comes to the targets that have been set, does create this architecture in which all around the world, countries are saying, this is where we are going. we will be chasing after this clean energy future. this is how we will meet our goals. we will double down on solar

power, double down on wind power, invest more heavily in biofuels, figure out battery technologies. budget, saw in this which was really significant was an extension of the solar tax credits and when tax credits -- wind tax credits that we boost early on in my administration that resulted in wind power increasing threefold, solar power increasing by 20 fold. those tax credits will not be extended for 5-7 years. , thatonsequence combination of market signals means the private sector will start investing much more heavily. they know this is coming. it is not just coming here. it is coming around the world. you now have a global marketplace for clean energy stable and accelerating

over the course of the next decade. that then creates a different dynamic. that is independent of what congress does, but also helps to shape what congress does. the more people that are now getting jobs in solar installation and production, the companies whohave are seeing how american inovation can sell products clean energy all across the asian pacific and in europe and africa. suddenly, there is a big monetary incentive to getting this right. oft has been the history environmental progress in this country and now exported around the world. every time we made a decision, we will have clean air, the predictions were everything would fall apart.

lo and behold, turns out american innovation makes getting clean air a lot less expensive than people expected and it happened a lot faster than people expected. when we made a decision that we were going to double fuel efficiency standards on cars come everybody said it will ruin andamerican power industry the american auto industry which has been booming. acid rain, when george h.w. bush instituted a system to charge emissions that were causing acid rain come everybody said you cannot do that, that will ruin business. it is a smoother, faster, quicker, better and acid rain -- -- you mayere born not remember, that was a big deal and most don't remember it even more.

do i think there will be a lot of noise and campaigning next year about how we will stop paris in its tracks? there will be a lot of noise like that. two yearslly think from now, three years from now, even republican members of congress will look at it and say that is a smart plan? i don't think they will. keep in mind, right now, the american republican party is the only major party that i can think of in the advanced world that effectively denies climate change. it is an outlier. that many of the key signatories architects to this deal come from center-right governments. immigrants, like

but they admit, science tells us we need to do something about climate change. that this is may be anthat advantage in terms of short-term politics in the republic and primary. it is not something that will be a winner for republicans in the long term. >> is it embarrassing to you that the other party denies climate change? president obama: no. first of all, i'm not a member of that party. second of all, it did not stop us from being the key leader in getting this done. this is something i've been working on now for 5-6 years. , in i went to copenhagen essentially engaged in 24 hours of diplomacy to salvage from a pretty chaotic process the basic

principle that all countries had to participate, we could not have a rigid division between developing countries when it came to solving this problem. that was the initial foundation to then, working with other countries, culminating in the joint announcement with china, bringing in india and brazil and the other big emerging countries, working with the europeans and getting this done. this would not have happened without the american leadership. by the way, the same is true for the iran nuclear deal. the same is true for the transpacific partnership, the same is true for stamping out ebola, something you may recall from last year, which was the potential end of the world. juncture, what we've said is that american strength

and american exceptionalism is not just a matter of us bombing somebody. more often, it is a matter of us convening, setting the agenda, pointing other nations in a direction that is good for everybody and good for u.s. interests, engaging in painstaking diplomacy, leading .y example sometimes, the results don't come overnight. they come the following day. but, they come. this year, what you really saw was the study persistent -- steady, persistent leadership on many initiatives i began when i first came into office. i want to ask you about

criminal justice -- [indiscernible] the united states is 5% of the global population but 25% of the global jail population. [indiscernible] president obama: we will defeat isis. and, we will do so by systematically squeezing them, cutting off their supply lines, cutting off their financing, taking out their leadership, taking out their forces in partnership with forces on the spottythat sometimes are , sometimes need capacity building, need our assistance, need our training, but we are seeing steady progress in many of these areas. they will be on the run.

they will continue to be dangerous. let me be very clear. whenever i say we have made progress in squeezing the territory they control or made real inroads against them, people will say if something happens around the world, obviously that must not be true. ,n any battle, in any fight even as you make progress, there are still dangers involved. isil's capacity to info infiltrate western countries with people who have traveled to syria or iraq and the savviness of their social media, their ability to recruit disaffected individuals who may be french or british or even u.s. citizens

will continue to make them dangerous for quite some time. we will systematically go after them. in order for us to stamp them , we have toly eliminate lawless areas in which still room. we can disable them, dismantle much of their infrastructure, great review thus greatly reduce the threat they pose to the united states, our allies and neighbors, but in the same way that al qaeda is pinned down and has much more difficulty carrying out any significant attacks because of how we have systematically dismantled them, they still pose a threat. there are still operatives interested in carrying out terrorist attacks. because they still operate in areas between pakistan and

afghanistan war in yemen. -- or in yemen. they are hard to reach per dollar long-term goal has to be stabilizing these areas so they don't have any safe haven. in order for us to do that in syria, there has to be an end to the civil war. there has to be an actual government that has a police capacity and structure in these areas that currently are ungoverned. it is my firm belief and the the experts in this administration that so long as assad is there, we cannot achieve that kind of stability inside of syria. lastistory over the several years indicates as much. a topill continue to be

priority for us, moving aggressively on the military take and not letting isil a breath and pounding away at them with our special forces and our airstrikes and the training and advising of partners who can go after them. keepwe also have to aggressive on this diplomatic front for us to bring countries together. all right? on criminal justice reform, i'm hopeful. was that i strongly support the senate legislation that is already been put forward. i'm hopeful that the house can come up with legislation that follows the same principles, to make sure that we are doing sentencing reform and doing a reducingb in terms of

recidivism and providing support for ex offenders. if we can get those two bills together in a conference, i am somewhat optimistic we will be able to make a difference. when you use the term "mass ,ncarceration," statistically the overwhelming majority of people incarcerated are in state prisons and state facilities for state crimes. we can only focus on federal law and federal crimes. there is still going to be a of individualsn who are incarcerated come even for nonviolent drug crimes. started inrend that the late 1980's and 1990's and accelerated at the state levels. if we can show at the federal level that we can be smart on

crime, more cost-effective, more just, more proportionate, we can set a trend for other states to follow as well. this will not be something reversed overnight. just to go back to my general forciple, it took 20 years us to get to the point we are at now. it will be 20 years before we reverse some of these major trends. to -- thank you. [indiscernible] president obama: thank you. merry christmas, everybody! >> president obama giving his year and big wrapup news conference. he was out there for 45 minutes. a lot of topics, took a couple victory laps, talk about the issues on most people's minds.

pertaining to islamic state and the administration's efforts to defeat that movement, talking about syria. what struck you as the most noteworthy? mark: his domestic agenda. he praised the new speaker of the house, paul ryan. of thisd to be part emerging sense in washington that things can get done. still divisions between control of the house and senate and the white house. was aiming to convince people that balance between reassuring the country that business can go on and the countriey is relatively safe and not leaving the impression that he is being insufficiently vigilant about taking on isis. >> sufficiently aggressive and

clear that the feeding -- defeating isil is imperative. he has finally recognized that and san after paris bernardino was into with the public mood. there was a lot of leaning into resolute rhetoric. the discussions -- you knew he would talk about optimism about working with paul ryan to move forward. the year, he talked about fourth quarter of his presidency. there is still a whole second half of the fourth quarter left to go. optimistic,ot to be he would be undermining himself. he set the table for getting stuff done next time around. atpresident obama speaking his annual end of your press

conference. -- end of year press conference. this is a press conference that ranged as widely >> we have a guest in our covering thereau, white house for us. good to see you. give us a sense of what you felt was most noteworthy coming out of the press conference. angela: i thought president obama spend a lot of time building his legacy. he talked about what he has done and setting a positive tone for what he did in 2015. it has been a challenging year for him in the country. he wanted to highlight what he has done as well as talk about next year. he has one more year left and he things done. he sounded optimistic about what he sees out of the new congress